Reserve Bank of India (RBI) feels there should be at least four to five large banks in the country to prevent monopolistic market power.

"Presently, (there is) significant skewness in the size of banks. The second largest bank in the system is almost one-third the size of the biggest bank. This creates a monopolistic situation," D Subbarao, Governor of RBI, said during his speech at the FICCI-IBA Annual Banking Conference.

State Bank of India (SBI) - the country's largest lender - is planning to expand further by merging its subsidiaries. SBI has already merged two of its associate banks – State Bank of Saurashtra in 2008 and State Bank of Indore in 2010. SBI plans to merge one more subsidiary in the current financial year. Read More

Jyothi Shankaran

    Jyothi’s last role was as Senior Editor with the business news channel Bloomberg TV India. He also worked as News Editor at business-standard.com, the online version of the business newspaper Business Standard. Jyothi is a chemical engineer from the Regional Engineering College, Srinagar.